Utah Reps. pass bill to allow gold, silver coins as legal tender

Salt Lake City
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The state of Utah is on the verge implementing its own proto-Gold Standard. The House and Senate have voted in favor of HB317, which would make gold and silver coins legal tender. Governor Gary Herbert has until the end of the month to veto the bill.

“The gold standard would keep you from printing money and destroying the middle class,” said Republican Congressman and potential 2012 Presidential candidate Ron Paul. “Every country where you have runaway inflation, there's no middle class. Mexico, there's no middle class, you have a huge poor class, and a lot of wealthy people. Today we have a growing poor class, and we have more billionaires than ever before. So we're moving into third world status...”

In fear of the United States dollar being virtually worthless, some legislators in several states have introduced legislation that would allow their state to mint their own currency. But the state that has captured the most media attention, including a mention on Judge Andrew Napolitano’s Freedomwatch, is Utah.

According to the Salt Lake Tribune, Utah residents may soon be allowed to use gold and silver coins in order to purchase goods and services. Lawmakers in the House and Senate have passed HB317 47-26 that would allow Buffalo and Eagle coins to be used as legal tender.

Furthermore, the bill exempts the transfer of gold and silver from state taxes. Foreign minted coins, such as Krugerrands, Napoleons and Pandas, would not be accepted under the bill.

Utah Governor Gary Herbert will have until Mar. 30 to veto the legislation, but if he doesn’t then the bill will automatically become law. It is still unknown where the governor stands on the bill and he has not spoken to the media regarding the legislation.

“This is a step in preparedness, a step in security,” said Republican Utah Representative Brad Galvez, reports Commodity Online. “It allows us to be able to hold up our economy as the dollar continues to shrink.”

Some, however, feel the bill will incite tax loopholes. Certified public accountant and Representative Steve Eliason opposed the bill and said investors who are looking for a way to avoid capital-gains taxes on assets can sell it for coins.

The bill comes as there is a growing anti-Federal Reserve movement. Proponents of auditing the Fed and/or abolishing the institution completely say former Fed Chairman Alan Greenspan and his successor Ben Bernanke were the instigators of the current economic collapse.

“They’ve been a disaster,” said policy director of the American Principles Project, Jeff Bell, reports the Globe and Mail “Mr. Bernanke, ever since he got on to the Fed, has been a force for fighting deflation and bringing interest rates down to the disappearing point.”